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Meg Company showed the following balances at the end of its first year: Cash $5,000 Prepaid insurance 500 Accounts receivable 2,500 Accounts payable 2,000 Notes payable 3,000 Common stock 1,000 Dividends 500 Revenues 15,000 Expenses 12,500 What did Meg Company show as total credits on its trial balance? a. $21,500 b. $21,000 c. $20,500 d. $22,000 Sept 1: Purchase school supplies from University Bookstore worth $450. Paid $200 in cash and the remainder on account. Supplies 450 Cash 200 Accounts Payable 250 Sept 4: Receive $500 cash advance from landlord for snow shoveling services, beginning December of this year. Cash Unearned Revenue Sept 10: Hired Bucky Badger to distribute flyers for new student organization. Agree to pay him $10 an hour plus 10% of all new member fees, payable monthly. No ENTRY Sept 15: Pay University Bookstore remaining amount due for school supplies from Sept 1st transaction. Accounts Payable Cash Bucky Company provided consulting services and billed the client $2,500. As a result of this event a. assets remained unchanged. b. assets increased by $2,500. c. equity increased by $2,500. d. Both b and c. If Bucky company issues common stock for $25,000 and uses $20,000 of the cash to purchase a truck, a. Assets will be increased by $5,000. b. Equity will be reduced by $25,000. c. Assets will be increased by $25,000. d. Assets will be unchanged.